Investors advised to buy Apple stock after 'insanely insane' selloff

After eight weeks of Apple's plummeting value, one analyst believes the selloff has reached a point of being "insanely insane."

Brian White of Topeka Capital Markets is baffled by the sharp selloff of Apple stock during the company's strongest quarter of the year. In the latest downturn, the company's value is off 28 percent from its peak in September.

He noted that Apple has delivered annual growth that is 13-fold greater than the S&P 500 over the last eight years. Despite this, Apple trades at a 20 percent price-to-earnings ratio discount when compared to the S&P 500.

"While we don't expect Apple to grow (earnings per share) by 92% per annum over the next five years, we believe 20-30% growth is reasonable based on the company' slow market share in mobile phones and PCs, combined with growth opportunities in tablets and new potential areas such as Apple TV," White wrote in a note to investors on Monday.

Apple had $121.3 billion in cash at the end of its fiscal year 2012, amounting to nearly $128 per share, or 24 percent of the company's stock price. Even if Apple decides to pay out a higher dividend to investors, White believes Apple will still hold nearly $204 billion in net cash by the end of fiscal 2014, which would amount to $212 per share or 40 percent of the current stock price.

"As such, the dividends that Apple can afford to pay out in the future are significant," White said, "and there is no reason why Apple should not currently be paying out at least a 3-4% dividend yield (or $16-$21 per share) versus the current 2% yield (or $10.60 per share)."

its not about what they are doing. its about what will drive growth in the future. Apple TV is starting to feel distant and how many more ipad variations can they really do ?
Apple Fan and Stock Holder

While Apple's hardware receives most of the focus, I think their greatest potential lies with their software. This is where the real profits lie, and they have only scratched the surface, here.

Mostly of the sell off was due to Tax scare coming for 2013.. Apple has made the most returns and so many are selling off to pay on capital gains.. If you look at how much was sold though, it was a fraction of the outstanding stock.. The one apple exec only sold like 1% of his stock, but got like $10m in cash for it.. most likely to cover gains taxes he expects to hit him.

But when people see an Exec selling, people panic. lol, thinking it's some type of sign.. I swear.. Wall Street is worse than a 15 year old teenager when it comes to rumors and junk.. It really is like it's run by he said/she said.. there is no true reasoning behind it anymore.. sad really.. Might as well as read the funnies to get your stock advice!

I see the OS becoming more like the iPad. Im not sure this is what computer users want if windows 8 launch is any indication. Of course Apple will do a better job then windows. Wall Street is looking at the money maker that's the iPhone. Even if the software side doubled their business. It would not resolve the lack of innovation coming out of the iPhone division. We need to see a bright future for iPhone growth or replacement/alternative . What will Apple do to get new iPhone customers, not existing ones. Thinner iphone? Faster iPhone?

Apple TV was always going to be the next growth center. Im not seeing enough rumors to support that anymore. Possibly car integration ? But even that has a limited profit center.